The manufacturer is not the only one responsible for the final price of medicines. Distributors and pharmacies are equally important, said representatives of Latvian medicines manufacturer Grindeks.
Commenting on the information reported by mass media about the differences in the prices of medicines in different countries, the company explained that the manufacturer is not the one who dictates the price for which medicine will be sold by pharmacies.
The final price is formed by the price set by the manufacturer, the markup added by retailers and pharmacies. This is why medicine prices in different pharmacies in the same country usually differ.
As for the difference in prices of medicines between Latvia and other countries, Grindeks representatives said the prices at which the company sells its products to wholesale traders are unified.
Slight differences may appear in some countries depending on their local market conditions, medicine compensation conditions and other factors.
“The final prices of medicines in other countries are formed not only depending on the price set by the manufacturer, the mark-up of wholesalers and pharmacies, but also on the VAT rate set in each country,” the company explained.
As previously reported, Grindeks turnover in 2022 was at EUR 257.913 million, which is 11.1% more than the year prior. Profits went down by 41.2% – to EUR 24.19 million.
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Grindeks: medicines’ final prices is decided by manufacturers, distributors and pharmacies
